Hayes Lemmerz Announces Sale of MGG Group
30 June 2007 - 8:30AM
PR Newswire (US)
NORTHVILLE, Mich., June 29 /PRNewswire-FirstCall/ -- Hayes Lemmerz
International, Inc. (NASDAQ:HAYZ) today announced the sale of its
wholly owned subsidiary, MGG Group B.V. to an affiliate of the
ECF-Group, a privately held company based in Switzerland and The
Netherlands. Located in The Netherlands and Belgium, MGG Group's
three facilities manufacture a variety of components including heat
exchangers for gas-fired boilers, intake manifolds and other
aluminum components for the European automotive, commercial vehicle
and other industries. Under the agreement announced today, the
investors acquired all of the outstanding stock of MGG Group B.V.
and its subsidiaries. While financial terms of the transaction were
not disclosed, Hayes Lemmerz did announce that MGG's annual sales
for fiscal 2006 were approximately $140 million. "We are pleased
that we have completed this transaction," said Curtis Clawson,
President, CEO and Chairman of the Board of Hayes Lemmerz. "By
divesting this non-core business and focusing on high growth/high
return markets, we are continuing to execute our strategic business
plan and our drive toward profitability and positive free cash
flow." Mr. Clawson added, "We have enjoyed our relationship with
the MGG Group for many years and we are confident that they will be
a valuable addition to the buyer." The Company does not expect this
transaction to have a material impact on its previously released
full fiscal year 2007 guidance. Hayes Lemmerz International, Inc.
is a world leading global supplier of automotive and commercial
highway wheels, brakes and powertrain components. The Company has
27 facilities and approximately 7,800 employees worldwide. Forward
Looking Statements This press release contains forward-looking
statements with respect to our financial condition and business.
All statements other than statements of historical fact made in
this press release are forward-looking. Such forward- looking
statements include, among others, those statements including the
words "expect," "anticipate," "intend," believe," and similar
language. These forward-looking statements involve certain risks
and uncertainties. Our actual results may differ significantly from
those projected in the forward-looking statements. Factors that may
cause actual results to differ materially from those contemplated
by such forward-looking statements include, among others: (1)
competitive pressure in our industry; (2) fluctuations in the price
of steel, aluminum, and other raw materials; (3) changes in general
economic conditions; (4) our dependence on the automotive industry
(which has historically been cyclical) and on a small number of
major customers for the majority of our sales; (5) pricing pressure
from automotive industry customers and the potential for
re-sourcing of business to lower-cost providers; (6) changes in the
financial markets or our debt ratings affecting our financial
structure and our cost of capital and borrowed money; (7) the
uncertainties inherent in international operations and foreign
currency fluctuations; (8) our ability to divest non-core assets
and businesses; and (9) the risks described in our most recent
Annual Report on Form 10-K and our periodic statements filed with
the Securities and Exchange Commission. You are cautioned not to
place undue reliance on the forward-looking statements, which speak
only as of the date of this press release. DATASOURCE: Hayes
Lemmerz International, Inc. CONTACT: Marika P. Diamond of Hayes
Lemmerz International, Inc., +1-734-737-5162 Web site:
http://www.hayes-lemmerz.com/
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